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@ josh
2025-05-25 02:31:35
From ChatGPT, the scariest part is the last sentence:
The United States is experiencing the lowest money‑velocity on record, despite record money creation. That suggests traditional monetary stimulus is yielding diminishing returns: more dollars are being parked in deposits or financial assets rather than being spent repeatedly on goods and services.
Velocity’s slow rebound tells us the pandemic distortion is fading, but the century‑long downtrend—driven by demographics, financial engineering and policy design—remains intact. That keeps putting the burden of growth on either larger fiscal packages or genuine productivity gains. As an operator or investor, position for liquidity‑driven whiplash and keep an eye on the handful of catalysts that could jolt V out of its long glide‑path.
What could break the pattern? Large‑scale fiscal stimulus funded by direct deposit (helicopter money).